CSDR Settlement Fails Penalties: ECSDA Framework
On 22 December 2020, ECSDA published the updated version of the ECSDA CSDR Settlement Fails Penalties Framework.
Cash penalties are required by the EU legislators to be imposed by CSDs and aim at increasing settlement efficiency rates. The requirements are outlined in the CSD Regulation (EU 909/2014) and its underlying Standards.
The document can be used by Central Securities Depositories (CSDs) and their participants as a market practice on how CSDs should develop harmonised settlement fail penalties mechanisms. The document is meant to be evolving, along with the evolution of the views of the competent authorities on the matters under their review. It can be used by the CSDs and their participants to start their IT developments to comply with CSDR Settlement Fail penalties-related requirements.
This version of the document provides the changes in comparison with the previous version in grey and the pending assumptions in yellow.